Negative gearing
A property is negatively geared when its expenses (interest, rates, insurance, maintenance) exceed its rental income — you top it up from your own pocket, betting on capital growth.
Negative gearing is a growth strategy: you accept a weekly loss now in exchange for expected value gains later. Its viability in NZ depends heavily on interest rates, interest deductibility, and the ring-fencing rules — rental losses generally can't be offset against your salary; they carry forward against future rental profits.
The opposite is positive gearing, where the property pays for itself.
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